Rental Renewals Remain Common as Prices Stabilize

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1 Minutes Read

Dubai tenants are finding it advantageous to renew their rental contracts this June, even with new residential buildings entering the market. Across popular areas like Dubai Marina and Arjan, sticking with the current landlord and negotiating rent is often more cost-effective. Renewals typically offer better savings, with new leases potentially costing 10-30% more, depending on the location.

Data from GCP Properties indicates that renewals are outpacing new leases in most areas, except for Business Bay. In Arjan, studio apartments average around Dh50,000, while one-bedroom units are approximately Dh72,000. Similar trends are observed in other popular residential locations. The slowing rental growth encourages existing tenants to renew rather than seek new properties. In Business Bay, studios range from Dh80,000-Dh85,000, and one-bedroom apartments start from Dh120,000. Downtown Dubai offers studios from Dh60,000 and one-bedroom units from Dh100,000.

The implementation of Dubai's smart Rental Index in January has also influenced the market. Initially, the index led to rent increases during renewals. Now, increases are happening at the individual property level. Landlords may seek a 15% increase if the index allows, but most renewals are in the 5-10% range, which tenants generally find acceptable.

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